Q3 2024 S&P Global Inc Earnings Call

Mark Grant: Good morning and welcome to S&P Global's third quarter 2024 earnings conference call. I'd like to inform you that this call is being recorded for broadcast. All participants are in a listen-only mode.

Good morning, and welcome to S&P Global's third quarter 2024 earnings conference call I'd like to inform you that this call is being recorded for broadcast all participants are in a listen only mode. We will open the conference to questions and answers after the presentation and instructions will follow at that time to act.

Mark Grant: We will open the conference to questions and answers after the presentation, and instructions will follow at that time.

Mark Grant: To access the webcast and slides, go to investor.spgobl.com. If you need any additional technical assistance, please press star zero, and I will assist you momentarily.

The webcast and slides go to Investor Dot S P global Dot com.

Speaker Change: You need any additional technical assistance. Please press star zero and I will assist you momentarily.

Mark Grant: I would now like to introduce Mr. Mark Grant, Senior Vice President of Investor Relations for S&P Global. Sir, you may begin. Good morning, and thank you for joining.

Speaker Change: I'd now like to introduce Mr. Mark Grant Senior Vice President of Investor Relations for S&P Global Sir you may begin.

Mark Grant: Good morning, and thank you for joining.

Speaker Change: [music] 2024 earnings call presenting on today's call are Doug Peterson, President and Chief Executive Officer, Chris Cragg interim Chief Financial Officer, and Martina Cheung incoming President and Chief Executive Officer, and current President of S&P Global ratings.

Mark Grant: 2021 earnings call. Presenting on today's call are Doug Peterson, President and Chief Executive Officer; Chris Craig, Interim Chief Financial Officer; and Martina Chung, incoming President and Chief Executive Officer, and current President of S&P Global Ratings. We issued a press release with our results earlier today. In addition, we have posted a supplemental slide deck with additional information on our results and guidance. If you need a copy of the release and financial schedules or the supplemental deck, they can be downloaded at investor.spglobal.com.

Speaker Change: We issued a press release with our results earlier today. In addition, we have posted a supplemental slide deck with additional information on our results and guidance.

Speaker Change: If you need a copy of the release and financial schedules or the supplemental deck. They can be downloaded at investor Dot S. P Global dotcom.

Mark Grant: The matters discussed in today's conference call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including projections, estimates, and descriptions of future events. Any such statements are based on current expectations and current economic conditions and are subject to risks and uncertainties that may cause actual results to differ materially from results anticipated in these forward-looking statements. Additional information concerning these risks and uncertainties can be found in our forms 10-K and 10-Q filed with the U.S. Securities and Exchange Commission.

Mark Grant: In today's press release and during the conference call, we are providing non-GAAP adjusted financial information. This information is provided to enable investors to make meaningful comparisons of the company's operating performance between periods and to view the company's business from the same perspective as management. The press release contains financial measures calculated in accordance with GAAP that correspond to the non-GAAP measures we're providing, and the press release and the supplemental deck contain reconciliation of such GAAP and non-GAAP measures. The financial metrics we'll be discussing today refer to non-GAAP adjusted metrics unless explicitly noted otherwise.

Mark Grant: I would also like to call your attention to certain European regulations. Any investor who has or expects to obtain ownership of 5% or more of S&P Global should contact investor relations to better understand the potential impact of this legislation on the investor and the company.

Mark Grant: We are aware that we have some media representatives with us on the call. However, this call is intended for investors, and we would ask that questions from the media be directed to our media relations team, whose contact information can be found in the release.

Speaker Change: Questions from the media be directed to our media relations team, whose contact information can be found in the release at this time I would like to turn the call over to Doug Peterson Doug.

Doug Peterson: At this time, I would like to turn the call over to Doug Peterson. Doug? Thank you, Mark. S&P Global delivered exceptional financial results in the third annual revenue increase, 16% year-over-year, marking the third consecutive quarter of accelerating revenue growth. Our ratings division continues to contribute meaningfully to our outperformance, with transaction revenue increasing more than 80% year-over-year. Revenue from subscription products across the company increased 8% year-over-year as customers continue to turn to S&P Global to provide the benchmarks, data, thought leadership, and tools they need to make crucial decisions in today's macroeconomic lens. We delivered 330 basis points of trailing 12-month margin expansion and 21 percent growth in EPS as we continue to invest prudently across the business and return capital to shareholders.

Doug Peterson: Thank you Mark S&P global delivered exceptional financial results in the third.

Doug Peterson: Total revenue increased 16% year over year, marking the third consecutive quarter of accelerating revenue growth. Our ratings division continues to contribute meaningfully to our outperformance with transaction revenue increasing more than 80% year over year revenue.

Doug Peterson: Revenue from subscription products across the company increased 8% year over year as customers continued to turn to S&P global to provide the benchmarks data thought leadership and tools they need to make crucial decisions in today's macroeconomic landscape.

Doug Peterson: We delivered 330 basis points of trailing 12 month margin expansion and 21% growth in EPS as we continue to invest prudently across the business and return capital to shareholders.

Doug Peterson: You're to date, we've repurchased $2 billion in shares and planned to repurchase $1.3 billion more through year-end. In addition to our strong financial results, we continue to invest in innovation, particularly around generative AI in our strategic initiatives, which hold the potential to touch on shortly. We also continue the important work of optimizing our portfolio of products in order to create the most customer and shareholder value. We closed the divestiture of Finn Centric during the third quarter, and today announced the planned divestiture of Prime One. Prime One sits within our market intelligence division and won't have a material impact on either the division or the company's financial results.

Doug Peterson: Year to date, we've repurchased $2 billion in shares and plan to repurchase $1.3 billion more through year end.

Doug Peterson: In addition to our strong financial results, we continued to invest in innovation, particularly around generative AI and our strategic initiatives, which will touch on shortly.

Doug Peterson: We also continue the important work of optimizing our portfolio of products in order to create the most customer and shareholder value. We closed the divestiture of Vince centric during the third quarter and today announced the planned divestiture of Prime one pre.

Doug Peterson: Prime one sits within our market intelligence division and won't have a material impact on either the division or the company's financial results that said the divestiture further enables the company to focus our efforts on the best opportunities to drive long term profitable growth.

Doug Peterson: That said, the divestiture further enables the company to focus our efforts on the best opportunities to drive long-term, profitable growth.

Doug Peterson: Last week, we announced management changes in conjunction with our CEO transition. Martino will walk through that later in the call. Now turning to market and commercial conditions, the debt, equity, and commodity markets all continue to show improvement, benefiting our businesses. With more than $1 trillion in build issuance in the third quarter, we've surpassed $3 trillion a year to date. It's very encouraging to see how participants in the debt markets, both public and private, consistently turned to S&P Global Ratings to help assess risk, balance exposures across portfolios, and assess credit conditions. The experience and expertise of our analysts, the breadth and depth of our coverage across credit asset classes and geographies, and the relevance of our methodologies and thought leadership has all served the markets very well thus far in 2024.

Doug Peterson: Last week, we announced management changes in conjunction with our CEO transition Martina will walk through that later in the call.

Doug Peterson: Now turning to market and commercial conditions, the debt equity and commodities markets. All continue to show improvement benefiting our businesses with more than one trillion dollars and build issuance in the third quarter. We've surpassed three trillion dollars year to date is.

Doug Peterson: We've also seen some improvement in equity markets as our flagship indices like the S&P 500 have performed very well year to date. We continue to see gradual increases in IPO volumes, which benefits some of our volume-driven businesses, and M&E activity has also started to show early signs of recovery. The commodities markets have remained strong as well, especially in end markets like energy that are important to our business. We continue to see retention rates improve year over year in commodity insights and are very pleased with both the execution and the market reception of the new products.

Doug Peterson: That said, we've been calling out headwinds among our financial services customers for some time now. Those have continued in the third quarter with elongated sales cycles, as well as signs of increased price sensitivity and vendor consolidation. Vendor consolidation has historically been beneficial to S&P Global, given the breadth and diversity of products that we offer, though the pricing environment has had an impact this year. For the last few quarters, we've noted our expectation that retention rates and financial services would be slightly below last year. That said, cancellations among our smaller customers and market intelligence caused retention rates to dip below our expectations slightly in the third quarter.

Doug Peterson: And we expect that to continue to impact the business in the fourth quarter.

Doug Peterson: We'll discuss the impact of all these moving pieces on our guidance in a moment. But the aggregate impact is that we are substantially increasing our outlook on revenue growth, operating margins, and EPS for 2024.

Doug Peterson: Now, let's turn to activity in the debt markets. For build issuance, we saw a 76% increase year over year in the third quarter, as we saw strong growth across all products. Refinancing activity remains very strong, including some pull forward out of 2025 and even out of 2026, but certainly within the normal ranges what we would expect at this time of the year. We're starting to see more activity beyond refinancing, with some of the outperformance in the third quarter. This is a quarter driven by opportunistic issuance around dividend recapitalizations and the beginning of a recovery and M&A activity.

Doug Peterson: Now, let's turn to activity in the debt markets for build issuance, we saw a 76% increase year over year in the third quarter as we saw strong growth across all products refinancing activity remains very strong, including some pull forward out of 2025, and even out of 2026, but certainly within the.

Doug Peterson: Normal ranges, what we would expect at this time of the year.

Doug Peterson: We're starting to see more activity beyond refinancing with some of the outperformance in the third quarter driven by opportunistic issuance around dividend recapitalization and the beginning of a recovery in M&A activity.

Doug Peterson: Marka conditions, specifically the tight spreads and stability around the rate outlook, have continued to be major drivers of issuance in the third quarter and in form, are improved outlook for the remainder of 2024 as well. As we look to additional rate cuts over the next 12 to 18 months, we continue to expect strong demand among investors for public debt as the current yields are expected to moderate somewhat as rates come down.

Doug Peterson: Market conditions, specifically, the tight spreads and stability around the rate outlook have continued to be major drivers of issuance in the third quarter and inform our improved outlook for the remainder of 2024 as well.

Doug Peterson: As we look to additional rate cuts over the next 12 to 18 months, we continue to expect strong demand among investors for public debt as the current yields are expected to moderate somewhat as rates come down.

Doug Peterson: Turning to vitality, new enhanced products generated $377 million in the third quarter. This represents 11% of our total revenue and is consistent with what we reported last quarter. Key contributors to our vitality index are updated from last quarter as we've seen strong demand for Car Facts listings in the Car Facts banking insurance group. We also see strong growth in energy transition and climate and LNG price assessment products from our commodity insights division. We're encouraged by the acceleration and the pace of innovation that speaks global and look forward to maintaining our vitality index at or above the 10% target.

Speaker Change: Turning to vitality newer enhanced products generated $377 million in the third quarter. This represents 11% of our total revenue and is consistent with what we reported last quarter.

Speaker Change: Key contributors towards vitality index, our updated from last quarter as we've seen strong demand for car facts listings in the car facts banking and insurance group. We also see strong growth in energy transition and climate and LNG price assessment products from a commodity insights division.

Speaker Change: We're encouraged by the acceleration in the pace of innovation at S&P Global and look forward to maintaining our vitality index at or above the 10% target.

Doug Peterson: Now turning to our latest initiatives around generative AI, each quarter we've been highlighting just a few of the many ways we've been leveraging both traditional AI and generative AI within S&P Global. In the third quarter, we had a number of new use cases within our products and services, but also within our own internal processes that are very exciting. Within market intelligence, we introduced new advanced analytic solutions and GNI functionality through CAP IQ Pro, which allows users to build predictive models, automate workflows, and better identify patterns and data more quickly. Within commodity insights, we enabled cloud delivery of AI-ready data on clean energy technology.

Speaker Change: Now turning to our latest initiatives around generative AI each quarter, we've been highlighting just a few of the many ways. We've been leveraging both traditionally I and generative AI within S&P global.

Speaker Change: In the third quarter, we had a number of new use cases within our products and services, but also within our own internal processes that are very exciting.

Doug Peterson: This is a great example of our efforts to make sure that the investments we've made to prepare data sets for ingestion in AI models directly translate into benefits for our customers and economics for our business. Also in commodity insights, we introduced our AI-powered chatbot called Chat AI to improve the user experience, answer customer questions in real time, and help users more quickly discover the valuable insights in our Platts Connect platform. Within mobility, we're leveraging GNI and animation automation to embed the Carfax Carfox directly within the vehicle history ports that customers use. Soon the animated fox will appear on additional products, including car care user dashboards and our listings products, driving deeper customer engagement and enhancing brand affinity.

Doug Peterson: Lastly, we continue to invest in our people so they can take full advantage of these incredible technologies as they emerge. Through our recently launched Spark AI Academy, our employees receive meaningful training on prompt engineering and other insights into how they can best leverage AI in their own daily work. Not only does this make our employees more productive, but it allows us to cross-pollinate new use cases across the organization. It's been inspiring to see some of these early use cases emerge in code development, document analysis, record keeping, and process improvement, and the way people are sharing their new skills across S&P Global.

Doug Peterson: We're confident that AI will be a strong influence to improve efficiency, productivity, and the quality of life for years to come, and that over time, you will see these improvements in our growth and profitability.

Doug Peterson: Turning to our financial results, with our consistent focus on innovation and execution, we're pleased with the exceptional financial results across the enterprise this quarter. By serving our customers effectively and efficiently, we delivered exceptional growth and profitability in the third quarter.

Chris Craig: Now let me turn to Chris Craig, our interim CFO, to review the financial results. Chris, over to you. Thank you, Doug. We delivered strong performance in the third quarter of 2024 as revenue growth accelerated across three of five divisions, and we achieved solid margin expansion for the company. Revenue grew by 16% year over year to a second consecutive quarterly record of $3.6 billion in the third quarter, as we continue to see strength across our market-driven businesses. As Doug noted earlier, we're seeing variation in the relative strength of different end markets this year. We are benefiting significantly from the strength in debt and equity markets, while some softness in the financial services sector is tempering growth in pockets of the business.

Speaker Change: <unk> review the financial results, Chris over to you.

Chris: Thank you Doug we delivered strong performance in the third quarter of 2024 as revenue growth accelerated across three of five divisions, and we achieved solid margin expansion for the company.

Chris: <unk> revenue grew by 16% year over year to a second consecutive quarterly record of $3 6 billion in the third quarter as we continue to see strength across our market driven businesses.

Speaker Change: As Doug noted earlier, we're seeing variation in the relative strength of different end markets. This year.

Speaker Change: We are benefiting significantly from the strength in debt and equity markets, while some softness in the financial services sector is tempering growth in pockets of the business.

Chris Craig: The year-to-date outperformance of the market-driven businesses is also leading to elevated incentive compensation across the company. This is a great problem to have and will impact all of our divisions to varying degrees, which I'll discuss in more detail momentarily. Adjusted diluted earnings per share increased 21% year over year to $3.89. This is driven by a combination of our strong revenue growth, margin expansion of 180 basis points, and a 2% reduction in fully diluted share count. Turning to expense growth, we saw total adjusted expenses increased by 12%. As I mentioned earlier, incentive compensation and commissions have been significant drivers to our expense growth this year.

Speaker Change: The year to date outperformance of the market driven businesses is also leading to elevated incentive compensation across the company.

Speaker Change: This is a great problem to have and will impact all of our divisions to varying degrees, which I'll discuss in more detail momentarily.

Speaker Change: Adjusted diluted earnings per share increased 21% year over year to $3 89.

Speaker Change: This was driven by a combination of our strong revenue growth margin expansion of 180 basis points and a 2% reduction in fully diluted share count.

Speaker Change: Turning to expense growth, we saw total adjusted expenses increased by 12%.

Speaker Change: As I mentioned earlier incentive compensation and commissions have been significant drivers to our expense growth this year.

Chris Craig: This was true in the third quarter, and we expect it to be even more pronounced in the fourth quarter. Overall, while incentives are driving expense growth across our divisions and the enterprise, it is also a critical component of our strategy to align employee performance with our growth and profitability. The year-over-year variance in these expenses is particularly pronounced in ratings and indices, where we are seeing the largest increase in performance-based incentives. It is important to note, however, that our consolidated results impact incentive compensation in every division. We've also seen an increase in cloud cost throughout the year as we've moved many products to the cloud and have exited 15 data centers since the IHS Market merger closed.

Speaker Change: This was true in the third quarter, and we expect it to be even more pronounced in the fourth quarter overall.

Speaker Change: Overall, while incentives are driving expense growth across our divisions and the enterprise. It is also a critical component of our strategy to align employee performance with our growth and profitability.

Speaker Change: The year over year variance in these expenses is particularly pronounced in ratings and indices, where we're seeing the largest increase in performance based incentives. It is important to note. However that our consolidated results impact incentive compensation in every division.

Speaker Change: We've also seen an increase in cloud costs throughout the year as we moved many products to the cloud and have exited 15 data centers since the IHS markit merger closed.

Chris Craig: This increase is reflected in the core and investment growth category, along with our strategic investments and the increase in certain operating expenses that come naturally as a business continues to grow. We also saw increased expenses associated with traditional compensation outside of incentives and commissions, reflecting the usual course of hiring and the annual merit increases across the company.

Chris Craig: While important to remain transparent about the drivers of expense growth, it is just as important to reinforce the fact that the majority of these increased expenses come as a result of strong growth and fantastic financial results to date.

Chris Craig: Now turn to strategic investment areas where we continue to deliver on our initiatives supporting growth across various parts of the business. Sustainability and energy transition revenue grew 15% to $90 million in the quarter. Growth was driven primarily by strong demand for commodity insights, energy transition subscription offerings. In private market solutions, revenue increased by 20% to $134 million. Growth was driven primarily by increased traction of our product offerings in the private market services of S&P Global Ratings. For revenue synergies, we exited the third quarter with an annualized run rate of $249 million. During the quarter, we recognized $72 million in revenue synergies, which came from a mix of cross-cell activity and revenue generated from new products.

Chris Craig: Turning toward divisions, market intelligence revenue increased 6% in the third quarter. Desktop grew 8% or 1% when excluding the impact from the Visible Alpha acquisition. We continue to see demand for our core products in desktop, though we also face headwinds in the financial services and market. The elevated cancellations that we discussed in prior quarters continue to impact the organic desktop growth rate, and we expect that impact to continue through at least the end of the year. Data and advisory solutions grew 5% driven by strong demand for high growth products, such as alternative data, from our market data, valuations, and analytics products suite.

Chris Craig: Enterprise solutions grew 5% or 11% when excluding the impact of the thin-centric divestiture. Growth was driven by strong levels of primary loan restructuring and amendment activity, and several large multi-year software renewals. Credit and risk solutions grew 4%, lapping a difficult comparison from the prior year. Growth was driven by solid subscription performance for a ratings express across North America, along with new use cases emerging from content, externalization, and digitization. Adjusted expenses increased 8% year-over-year due primarily to the growth drivers around compensation, commissions, and strategic investment that I previously discussed. Operating profit increased 2%, and operating margin decreased 130 basis points to 32%.

Chris Craig: Importantly, market intelligence margins would have expanded year-over-year were it not for incentives and commissioning rules related to the company's overall overperformance, particularly driven by stellar results in our ratings and indices' divisions. Trailing 12-month margins expanded 60 basis points to 32.9%.

Speaker Change: <unk> Commission accruals related to the Companys overall over performance, particularly driven by stellar results in our ratings and indices divisions trailing.

Speaker Change: Trailing 12 months margins expanded 60 basis points to 32, 9%.

Chris Craig: Now, turn to ratings where we saw revenue growth accelerate to 36%, materially exceeding our internal expectations. Transaction revenue grew by 83% in the third quarter, driven by strong activity, particularly in investment grade and high yield bonds during what has historically been a seasonally quiet summer period. Non-transaction revenue increased 4%. As we highlighted in the third quarter of last year, there was a $1 time $19 million benefit from a cumulative catch-up related to commercial paper in 2023. Excluding the impact of that item last year, growth in non-transaction revenue would have been 8% year-over-year as a result of strong annual fee revenue and an increase in new rating mandates.

Speaker Change: Now turning to ratings, where we saw revenue growth accelerated to 36% materially exceeding our internal expectations.

Speaker Change: Transaction revenue grew by 83% in the third quarter, driven by strong activity, particularly in investment grade and high yield bonds. During what has historically been a seasonally quiet summer period.

Speaker Change: Non transaction revenue increased 4% as we highlighted in the third quarter of last year. There was a onetime $19 million benefit from a cumulative catch up related to commercial paper in 2023.

Speaker Change: Excluding the impact of that item last year growth in non transaction revenue would have been 8% year over year as a result of strong annual fee revenue and an increase in new rating mandates.

Chris Craig: Adjusted expenses increased 20%, primarily due to increased incentive compensation. This resulted in a 48% increase in operating profit and a 510 basis point increase in operating margin of 261.7%. Project, for the trailing 12 months, ratings margin expanded 650 basis points to 61.9%. And now turning to commodity insights, revenue increased 9% driven by strong performance across the division, including double-digit growth from two of four business lines. Price assessments and energy and resources data and insights each grew 11%, driven by strength in our crude and refined product offerings. In addition, both business lines benefited from favorable commercial conditions across various regions, most notably Middle East, Africa, and Asia.

Speaker Change: Adjusted expenses increased 20%, primarily due to increased incentive compensation. This resulted in a 48% increase in operating profit and a 510 basis point increase in operating margin to 61, 7% for.

Speaker Change: For the trailing 12 months ratings margin expanded 650 basis points to 61, 9%.

Speaker Change: And now turning to commodity insights revenue increased 9% driven by strong performance across the division, including double digit growth from two or four business lines.

Price assessments in energy and resources data and insights each grew 11% driven by strength in our crude and refined product offerings. In addition, both business lines benefited from favorable commercial conditions across various regions, most notably Middle East Africa and Asia.

Chris Craig: Advising transaction services revenue grew by 6% or 5% when excluding the impacts from the World Hydrogen Leaders acquisition. This was primarily driven by strong trading volumes across key sectors in global trading services. Upsharing data and insights revenue grew by 4% driven by strong demand for subscription based software and analytics products, as well as continued improvement in retention rates. Adjusted expenses increased 10%. Operating profit for commodity insights increased 8% and operating margin contracted by 60 basis points to 47.8%. Similar to market intelligence, commodity insights margins would have expanded where not for incentives and commission accruals related to the enterprises' over performance.

Speaker Change: Advisory and transaction services revenue grew by 6% or 5% when excluding the impacts from the world hydrogen leaders acquisition.

Speaker Change: This was primarily driven by strong trading volumes across key sectors in global trading services.

Chris Craig: Trailing 12 month margin increased by 50 basis points to 46.7%. Now turning to mobility, revenue increased 9% to your rear, driven by double-digit growth in two of three business lines. Dealer revenue increased 10% year of year driven by strong subscription growth across car packs offerings. Manufacturing revenue growth accelerated to 2% driven by a strong quarter of subscription sales. As expected, we continued to see lower transaction revenue related to our recall business, which can fluctuate based on the level of recall activity in any given period. Financials and other increased 12% as the business line benefited from strong underwriting volumes and increased market penetration. Adjusted expenses increased 9%. This resulted in operating profit increasing by 8% for the quarter and an operating margin of 42.2%, which is unchanged compared to the prior year period.

Chris Craig: Trailing 12-month margin contracted by 20 basis points to 38.8%.

Chris Craig: Now turning to S&P Dow Jones Indices, revenue increased 18%, primarily driven by strong growth in asset length fees, which benefited from higher AUM. asset length fees were up 22% driven by market appreciation and inflows for the third quarter. are global ETF AUM exceeded $4 trillion while we acquired a substantial portion of US ETF equity flows. Exchange traded derivatives revenue grew 16%. Primarily driven by strong volumes across our equity complex products. Data and custom subscriptions increased 5% year of year. The commercial initiatives we have previously discussed are beginning to benefit this business line, as ACV in the largest product group increased mid teens in the third quarter.

Chris Craig: The adjusted expenses increased 15% year of year, primarily due to increased incentive compensation indices. Operating profit increased 19%, and operating margin expanded by 80 basis points to 70.2%. On a trailing 12 month basis, indices' operating margin expanded by 200 basis points to 70%.

Chris Craig: As an enterprise, we delivered an exceptional quarter with robust growth while managing expenses prudently. Our diverse product suite is contributing to our strong results and reinforcing the benefits we realize from having these incredible global brands together.

Chris Craig: And please, with our team's strong execution during this period, look forward to finishing the year on a high note.

Martina Chung: And with that, I will now turn the call to Martinez, to provide an update on our leadership transition. Martina? Thank you, Chris.

Martina Chung: Over the 14 years that I've been at S&P Global, and underdogs' leadership, I've come to appreciate how this company has gone from strength to strength. That development and our consistent track record of strong performance has been built on trusted brands, exceptional talents, and a disciplined focus on exceeding our client's expectations. Over the last few months, I've been deeply engaged with our Board of Directors and every internal and external stakeholder group to make sure we continue that legacy of growth and customer delight. Doug and I've met jointly with many of our largest customers to hear directly from them how best we can position S&P Global to meet their needs in the coming years.

Speaker Change: <unk> talent and a disciplined focus on exceeding our client's expectations.

Speaker Change: Over the last few months I've been deeply engaged with our board of directors and every internal and external stakeholder group to make sure. We continue that legacy of growth and customer delight.

Speaker Change: And I've met jointly with many of our largest customers to hear directly from them. How best we can position S&P global to meet their needs in the coming years.

Martina Chung: I've also met with strategic partners, shareholders, regulators, and vendors to make sure that we, as a leadership team, have a clear understanding of the varying needs of each group so we can prioritize our investment in both time and capital in the most effective ways. I've spent a significant amount of time with our internal product, commercial, and analytical teams as well. While I've had broad experience in my career, including the privilege of leading two of our largest divisions, it's vital to me that I have a current and timely view of our products, our customer pain points, our innovation pipeline, our operations, and the environment in which we're currently operating.

Speaker Change: I've also met with strategic partners shareholders regulators and vendors to make sure that we as a leadership team have a clear understanding of the varying needs of each groups. So we can prioritize our investments in both time and capital in the most effective ways.

Speaker Change: I've spent a significant amount of time with our internal product commercial and analytical teams as well.

Speaker Change: Well I've had broad experience in my career, including the privilege of leading two of our largest divisions. It's vital to me that I have a current and timely view of our products our customer pain points, our innovation pipeline, our operations and the environment in which we're currently operating I've met with leaders across the organization to gain insights into all of these key areas.

Martina Chung: I've met with leaders across the organization to gain insights into all of these key areas, and this will remain an important part of how our leadership team maintains a customer centric, innovative, and informed strategy going forward. I've also spent time hearing directly from our people on the topics that matter most to them. I've hosted nearly 40 town hall meetings, roundtable discussions, and deep dive sessions across the organization to discuss everything from culture to organizational design, and to make sure that our leadership is accessible and transparent. These experiences have made it crystal clear to me how incredible this organization is.

Speaker Change: And this will remain an important part of how our leadership team maintains a customer centric innovative and informed strategy going forwards. I've also spent time hearing directly from our people on the topics that matter most to them I've hosted nearly 40, townhall meetings roundtable discussions and deep dive sessions across the organization to discuss everything from culture to.

Speaker Change: <unk> design and to make sure that our leadership is accessible and transparent with our people around the world. These.

Speaker Change: These experiences have made it crystal clear to me how incredible. This organization is our core products are strong our people our remarkable theres, a real sense of pride excitement and optimism as we look to expand our vision of what we can accomplish in the coming years.

Martina Chung: Our core products are strong; our people are remarkable. There's a real sense of pride, excitement, and optimism as we look to expand our vision of what we can accomplish in the coming years.

Martina Chung: Now, as many of you saw last week, we announced several leadership changes to ensure we have the right team in place to deliver this expanded vision. We have a strong culture of developing leaders at S&P Global, and it's a testament to that culture that six of the seven leaders on this slide who are taking on new roles are internal promotions. As we announced last week, we are thrilled to welcome Eric Abeloff as our new CFO, and we expect him to join in February of 2025. Eric rings a wealth of experience as a CFO in the financial services sector and a very strong track record of exactly the type of disciplined execution that we hope to continue here at S&P Global.

Speaker Change: Now as many of you saw last week, we announced several leadership changes to ensure we have the right team in place to deliver this expanded vision, we have a strong culture of developing leaders at S&P Global and it's a testament to that culture that six of the seven leaders on the side, who are taking on new roles are internal promotions.

Martina Chung: We also announced last week that we are making some changes in our division leadership. Effective November 1, Sugata Saho will become the president of our Market Intelligence Division, having previously led Commodity Insights. Yana Palak will become the president of S&P Global Ratings, having most recently served as the Global Head of Rating Service. We will have co-presidents of commodity insights, Marco Ramo, who is our current head of the fuels, chemicals, and resource solutions business, and Dave Ernstberger, who currently leads the market reporting and trading solutions business. S&P Global Mobility will continue under the leadership of Edward Turenier, and S&P Dow Jones Indices will continue to be led by Dan Draper.

Martina Chung: In addition to our division leadership, I also wanted to highlight two horizontal functions that we've introduced. First, in addition to his role as president of market intelligence, Segata Sahat will also serve as our Chief Enterprise Data Officer. In that role, Segata will lead enterprise-wide efforts to expand and connect S&P Global's vast data estate, harnessing the full potential of the company's data capabilities for our customers. Lastly, Sally Moore will be assuming the newly created role of chief client officer, given the immense breadth of the data products of the company and services that S&P Global brings to the market.

Martina Chung: We often meet with customers who are buying several products from various divisions. As current head of strategy, M&A, and partnerships, Sally has a deep understanding of our capabilities and strong relationships across the industry. In her new role, she will lead our commercial initiatives across the company to make sure that we are bringing the full power of S&P Global to our largest clients, and she will establish an enterprise-wide capability to drive strategic account management at scale.

Martina Chung: With our executive leadership team in place, we are in a strong position to execute against well-defined strategic initiatives. Benchmarks, private markets, sustainability and energy transition, enterprise data, and generous of AI were all topics that we discussed at our investor day in 2022, and we plan to continue our strategic focus and investments in these areas. Back in July, we established teams of senior leaders from across the organization to do deep reviews in the key strategic areas that we believe are aligned to our core competencies, competitive advantages, and market opportunities. And it was encouraging to see the work these teams delivered, as we believe each of these areas remains an attractive investment, and we identified important opportunities to drive incremental growth beyond what we had previously considered.

Martina Chung: We will have more to say about the strategic initiatives over time, but I wanted to assure you all that we continue to see very strong potential in each of these areas. We remain committed to transparency and accountability around the investments we are making, and the impact we're seeing on our performance as a result.

Martina Chung: Now turning to our outlook for the remainder of 2024. Our financial guidance assumes global GDP growth of 3.2%, US inflation of 2.9%, and an average price for Brent crude of $81 per barrel. These are all roughly in line with our previous expectations. While there's some variation in market expectations around the pace of rate cuts through the end of the year, our base case assumption is that we see at least one more rate cut this year in the US. While encouraging for various parts of our business going forward, we would not expect the number of rate cuts in the remainder of 2024 to drive much variation in our financial results for 2024.

Martina Chung: Given stability in our macroeconomic outlook and the significant outperformance since we last provided guidance, we are increasing our outlook for 2024. We are increasing our build issuance forecast for 2024 by 25 percentage points. Given the out performance in Q3 and our expectation that Q4 will likely see positive growth in build issuance, we are now expecting total build issuance to increase approximately 50% in 2024. These factors combined with the exceptional results year to date inform our decision to substantially increase our full year of financial guidance for the company once again. This slide illustrates our current guidance for GAP results.

Martina Chung: We are once again raising our enterprise outlook for the full year on all headline metrics, given the strength of the third quarter and our improved outlook for the fourth quarter. We now expect revenue growth in the range of 11.5% to 12.5%, adjusted margin expansion of 200 to 250 basis points, and adjusted diluted EPS in the range of $15.10 to $15.30, representing a 70 to 75 cent increase from our prior guidance. Additional details on our consolidated financial guidance can be found in our press release, but I also wanted to know we have increased our guidance for adjusted free cash flow to approximately $5.2 billion, up $500 million from our prior guidance.

We now expect revenue growth in the range of 11.5% to 12.5% adjusted margin expansion of 200 to 250 basis points and adjusted diluted EPS in the range of $15.10 to $15.30, representing a 70 to 75 cent increase.

Speaker Change: <unk> from our prior guidance.

Speaker Change: Additional details on our consolidated financial guidance can be found in our press release, but I also wanted to note. We have increased our guidance for adjusted free cash flow to approximately $5 $2 billion up $500 million from our prior guidance.

Martina Chung: As I'll discuss in a moment, we continue to balance near-term profitability with the need to invest for future growth, and we continue to prioritize long-term profitable growth for the company as a whole. The strength of our market-driven businesses so far in 2024 provides us with an opportunity to invest in our products, our people, and our brands across divisions while still delivering significant outperformance at the enterprise level, and that will be reflected in our outlook today. Specifically, as Chris discussed earlier, the strong outperformance thus far this year will increase incentive compensation across the company in 2024 and will also provide capital to pull forward some planned future investment and technology into this year.

Speaker Change: As I'll discuss in a moment, we continue to balance near term profitability with the need to invest for future growth and we continue to prioritize long term profitable growth for the company as a whole.

Speaker Change: The strength of our market driven businesses. So far in 2024 provides us with an opportunity to invest in our products our people and our brands across divisions, while still delivering significant outperformance at the enterprise level and that will be reflected in our outlook today.

Speaker Change: Specifically as Chris discussed earlier, the strong outperformance thus far this year will increase incentive compensation across the company in 2024 and will also provide capital to pull forward. Some planned future investment in technology into this year. This is a good thing and while it has the combined impact of temporary potential margin expansion in some day.

Martina Chung: This is a good thing, and while it has the combined impact of tempering potential margin expansion in some divisions in 2024, we firmly believe that investing in our products and people will enhance our ability to deliver stronger enterprise financial results over the long term.

Speaker Change: Visions in 'twenty 'twenty four we firmly believe that investing in our products and people will enhance our ability to deliver stronger enterprise financial results over the long term.

Martina Chung: Moving to our division outlook, given the continued headwinds that Doug mentioned facing our financial services customers, we are tightening the range for market intelligence revenue growth in 2024. We now expect growth in the range of 6% to 6.5%. Following the very strong third quarter and the improved outlook for the fourth quarter, we are raising the guidance range for ratings revenue growth by 12 percentage points, and now expect revenue in the range of 26% to 28% for the full year. While this represents an even more significant increase from the initial guidance we provide at back in February, we remind investors that our guidance reflects our expectations based on the best information and estimates available at the time, and ratings remains largely a market driven business that is difficult to predict in the near term.

Speaker Change: Moving to our division outlook, given the continued headwinds that Doug mentioned facing our financial services customers. We are tightening the range for market intelligence revenue growth in 2024, we now expect growth in the range of 6% to six 5%.

Martina Chung: The issuance environment in 2024 has progressed well beyond what we expected at the beginning of the year, and we have adjusted our guidance as we saw the market dynamics evolving throughout the year. We are pleased that our decisions to preserve and invest in capacity in prior years have allowed us to meet the elevated demand in 2024, and we look forward to finishing the year strong.

Martina Chung: In commodity insights, we are tightening the range and raising the low end to reflect the strength we've seen throughout the year. We now expect revenue growth in the range of 9% to 9.5%. In mobility, we are tightening the range as well, and we now expect revenue in the range of 8% to 8.5%.

Martina Chung: Raising our guidance by 3% to a new range of 13% to 15%.

Martina Chung: Turning to division margins. In market intelligence, we now expect margins in the range of 32.5% to 33%. Tightening and slightly lowering our prior range due to the updated revenue outlook and the elevated expenses associated with compensation that were discussed earlier. In ratings, we now expect higher revenue to improve margins as well. And now expect full year margins in the range of 61% to 62%. In commodity insights, we are tightening the guidance to a range of 46.5% to 47%. Reflecting the strong revenue growth, plans, strategic investments, and the impact of compensation expenses. In mobility, we are tightening the guidance to a range of 38.5% to 39%.

Martina Chung: Reflecting the performance year to date and the continued investments to drive future growth. In indices, we expect higher growth to drive improved margins, somewhat offset by incentive compensation and strategic investments. We now expect margins in the range of 69.5% to 70.5%. As we continue to prioritize enterprise growth and identify areas for incremental investment in both people and products, we are thrilled to be able to make those incremental investments while still passing on much of the revenue upside from this year to the margins.

Martina Chung: Compared to the initial guidance we provided at the beginning of the year, we now expect five to six percentage points more revenue growth, 100 to 150 basis points of further margin expansion, and nearly 10% higher adjusted EPS. We believe that this enterprise mindset and focus on solving for the collective whole will drive strong, profitable growth and long-term shareholder value for years to come.

Mark Grant: With that, we will turn the call back to Mark for your questions. Thank you, Martina. For those on the line, if you would like to ask a question, please press star one and record your name. To cancel or withdraw your question, simply press star two. Participants will be limited to one question in order to allow time for others during today's Q&A session.

Martina Chung: Operator, we will now take our first question. Thank you. Our first question comes from Ashish Sabhadra with RBC Capital Markets. Your line is open. Thanks for taking my question. I just wanted to drill down further on the MI segment. The execution there has been a bit choppy. And so just as we think about with the new leadership changes and some of the portfolio rationalization that we have seen, is there for a lot of opportunity for more rationalization there? Or how do we get that business on a more steady execution? Thanks.

Martina Chung: Hi Ashish, it's Martina here. Thank you very much for the question. Well, in market intelligence, as we said during the prepared remarks, we've certainly seen a little bit of an off-tick there in cancellations and some of our smaller customers. We talked about some pricing pressure, tightening of budgets, and some longer sales cycles. I think an important point here is that this is really around the end markets, Ashish, and some of the headwinds that we're seeing with those end markets. Now, as we move forward, we're continuing to drive innovation in our products within market intelligence. We're very focused on touch points with our customers and making sure we're meeting their needs.

Martina Chung: And maybe I would say while these are some cyclical headwinds and it's a little bit difficult to call where a trust might be here, but we're very confident that the value we're creating for the customers will be evident as we move through a cycle recovery or a cyclical recovery there as well.

Martina Chung: And perhaps to answer your question on the portfolio optimization piece, that yes, we've announced two investors this year. This is part of our ongoing model around portfolio optimization. We are always very disciplined and examining businesses and product lines across the company to make sure they're a fit for our strategy and that we are the right owners of those businesses. And so that's something that will continue to do in the future.

Martina Chung: Thank you.

Martina Chung: Our next question comes from Toni Kaplan with Morgan Stanley. Your line is open. Thanks so much. Martina, I wanted to ask you a bit of a broad question about where you see as the biggest areas of opportunity for investment in your mind. Just any – I imagine AI is probably up there, but just any others you've identified where you feel like the opportunity is really there. For the company. Thanks.

Martina Chung: Hi, Toni. Thanks for the question. As we said in the opening remarks, we've spent a lot of time in the last several months collectively as a team, myself and Doug meeting with customers, and quite frankly, this is a phenomenal business and one that we as a new leadership team will look to make even better. I highlighted five secular trends in the presentation, and in each of these five we had discussed during the investor day in 2022. And I'll tell you the thing that got me most excited is not only is – it was the work that we did in the last few months.

Martina Chung: It was a reaffirmation of the strategy that we have, but we've also identified other areas within those five where we think we've got good opportunities for maybe new incremental growth. So those would be the things I would highlight there, and a lot of excitement with the new leadership team to go after us. Thanks, Toni.

Martina Chung: Thank you.

Martina Chung: Our next question comes from Manav Puthnai with Sparklates. Your line is open. Thank you. Martina, I was just wondering, with all the work you've done leading up to taking over here, I think you're ended with the comment on solving for the collective whole. It feels like, with five big businesses, there's a whole lot going on. So just curious if the comment you made around simplification and MI, if you have any thoughts on the broader company in portfolio in terms of where it stands today.

Speaker Change: Our next question comes from Manav Patnaik with Barclays. Your line is open.

Manav Patnaik: Thank you Martin I was just wondering with all the I guess work you've done leading up to taking over here.

Manav Patnaik: I think you ended with the question of the become and then solving for the collective whole.

Speaker Change: And it feels like with five big businesses, there's a whole lot going on so I was just curious if you know the comments you made around simplification and end my if you have any thoughts on the broader company and portfolio are in terms of where it stands today.

Martina Chung: Hi, Manav. Thanks so much for the question. Look, you've seen us be very disciplined around capital management over the past several years and very specifically underdog as CEO, and we're going to remain committed to capital management and return to our shareholders. So I'll start by saying that with that, we will continue to look at whether it's M&A, whether it's portfolio management, with the same level of discipline that we always do. And as I said in the last question, we're going to test constantly: are we the right owners for businesses? Are we investing the right amount, or should we be reprioritizing and redirecting investments?

Speaker Change: Hi, Manav. Thanks, so much for the question look you've seen us be very disciplined around capital management over the past several years and very specifically under Doug as CEO and we're going to remain committed to capital management and returns to our shareholders. So I'll start by saying that you know.

Speaker Change: With that we will continue to look at whether it's M&A, whether it's portfolio management with the same level of discipline that we always do and as I said in the in the last question, we're going to test a constantly are we the right owners for businesses are we investing the right amount or you know should we be re prioritizing and redirecting investment.

Martina Chung: And those are all things that we'll do as a new leadership team going forward.

Speaker Change: And and those are all things that we'll do as our new leadership team going forward. Thank.

Martina Chung: Thank you, Manav.

Manav Patnaik: Thank you Manav.

Doug Peterson: Thank you. Our next question comes from Scott Wartzel with Wolf Research. Your line is open. Hey, good morning. Thanks for taking my question. Just wanted to hit on the synergy topic. I mean, good to see the run rate increasing there and just wondering in the context of maybe some of the choppiness that we're seeing in market intelligence and the outperformance and some of the other segments.

Speaker Change: Thank you. Our next question comes from Scott worked so with Wolfe Research. Your line is open.

Speaker Change: Hey, good morning, Thanks for taking my question just wanted to hit on the synergy topic I mean.

Speaker Change: Run rate, increasing there and I guess just wondering in the context of maybe some of the Choppiness that we're seeing in market intelligence and the outperformance in some of the other segments are we seeing any sort of change in geography in terms of where the synergies are impacting by division.

Doug Peterson: Are we seeing any sort of change in geography in terms of where the synergies are impacting by division? Thanks.

Doug Peterson: Thanks, Scott.

Doug Peterson: Thanks, Scott This is Doug when we look at the synergy performance of the company. We're very pleased across the board. We're ahead of ours, what we'd head of our expectations. We see in particular cross sell as one of the areas that has done incredibly well and when I talk about cross sell they talk about cross sell intra division. We're also very excited about.

Doug Peterson: This is Doug. When we look at the synergy performance of the company, we're very pleased across the board. We're ahead of our expectations. We see, in particular, cross sell as one of the areas that has done incredibly well. And when I talk about cross sell, I talk about cross sell intro division.

Doug Peterson: We're also very excited about the new role that Sally Moore is going to have, which is going to bring up a lot more opportunity across divisions for cross sell. And then within the divisions on new products, new services, we've been quite successful getting things out. And for example, we've had 23 new products this year so far for market intelligence. Those products are all doing well. And we continue to be on track to deliver our synergy. Thanks, Scott.

Doug Peterson: The new rule that suddenly more is going to have which is going to bring up a lot more opportunity across divisions for cross sell and then within the divisions on new products New services, we've been quite successful at getting things out in India. For example, we've had 23 new products. This year so far for market intelligence. Those products are all doing well and we continue to be on track to deliver our sins.

Doug Peterson: Geez.

Speaker Change: Thanks Scott.

Martina Chung: Thank you. Our next question comes from Faiza Alwy with Joy to Bank. Your line is open. Yes, hi, thank you. So I wanted to ask about ratings. I think Doug, in your comments, you mentioned something forward from 2025 and even 2026 this year. It's certainly been a very strong year for issuance. And I'm curious if you have any early thoughts around 2025. And I know a few years ago you talked about a 6-9% was the long-term growth rate or the 2526 growth rate. Do you think that is achievable, and what are some of the factors to consider?

Speaker Change: Thank you. Our next question comes from Faiza <unk> with Deutsche Bank. Your line is open.

Speaker Change: Yes, hi, Thank you. So I wanted to ask about ratings I think the dog in New York comments, you mentioned some pull forward from 2025 and even 'twenty 'twenty. They are it's certainly been a very strong year for issuance and I'm curious if you have any early parts around 2025, and I know a few.

Martina Chung: Hi, Faiza. This is Martina. Thanks so much for the question. Yes, we have seen certainly higher levels of issuance than we anticipated earlier in the year. And this is the third time I believe that we've raised guidance for ratings. The business itself when it comes to refinancing and the levels that we've seen for pull forward, et cetera. If we look at 2025 maturities and where they stand right now, how much is pull forward into 24? It's not dramatically different from what we would have seen in the last couple of years. And so, you know, when we say, as we usually do in our calls, that there's a healthy maturity wall anywhere from 2 to 2.8 trillion each year over the next five years, that is still very much the case for us.

Martina Chung: Now, we always also say that we can't predict with exact precision the actual timing of refinancing, and so much of that this year, for example, has been related to spreads. So, you know, to the extent that we see certain things continuing to move ahead, you know, could, you know, impact more pull forward or less pull forward. Moreover, I would say for us the biggest correlation in issuance overall is actually GDP growth. And so this is something that we would pay very close attention to over the next several years as we think about the ratings business and any of the other businesses that are, you know, impacted by GDP growth.

Martina Chung: And then, finally, to your point on the 69% investor day, this was really a target from 2023 to 2025, 2026, so a multi-year target. And I would say for the enterprise as a whole, we're very much on track for reaching that target and with ratings.

Martina Chung: Thank you, Faja. Thank you.

Martina Chung: Our next question comes from David Motomatum with Evercore. Your line is open. Hey, thanks. Good morning. Just wanted to follow up on the competition and market intelligence. It sounded like that. The price and competition picked up a little bit this quarter, wondering if you could just elaborate on that.

Martina Chung: And maybe secondly, specifically within market intelligence, Martina, if you're thinking about maybe incremental areas of investment that are needed to reach the 79% revenue or a target. Thank you.

Martina Chung: Great. Thanks, David.

Doug Peterson: Let me start. As we've mentioned, there's been headwinds on this area for many, many quarters. We have seen something that we discuss. We call vendor consolidation. That historically has been very beneficial to us. We have the kind of data sets in a way that many organizations, when we start talking with them, they don't realize how many things we have. It gives us an opportunity to bring more and more capabilities when we have these discussions. So yes, we have seen some consolidation. We've seen some sale cycle slowdown. We've seen some pricing pressure overall. But it is an incredibly strong business.

Doug Peterson: The synergies have been coming along, and the integration has gone incredibly well.

Martina Chung: Martina, over to you. Yeah, thanks, Doug, and thanks for the question. I would say that, as it relates to market intelligence, growth rates going forward, you know, Doug commented, and we've discussed in the earlier remarks as well. This is really a story of end markets. And we're never going to be the ones to call a trough, but we very firmly believe that with the increased touchpoint, the innovation that we've seen in the business, as we come through the recovery, we'll see the value come back into some of the areas that have been little challenged with the end market challenges that we've seen so far.

Martina Chung: Thanks for the question.

Martina Chung: Thanks, David. Thank you.

Craig Huber: Our next question comes from Craig Huber with Huber Research Partners. Your line is open. Thank you. Doug, I just wanted to say I thought you've done a great job writing the company here. I guess for the last 11 years, we show the best going forward here.

Martina Chung: You're going to get a tough act from our team to follow here, but Martina, my question to you is, as you think about what your plans are for the company here, what do you plan on potentially doing differently here going forward? Of course, we don't want to screw up anything here. Number one thing, but what are your plans, potentially doing different here to the hands, shareholders, or value? Thank you.

Martina Chung: Thanks for the question, Craig. And I completely agree with you that Doug is very hard to follow. I can tell you, we are focused really here on this wonderful company, great as it is, and how much better we can make it. And the new leadership team, as it's been announced, you know, does have some different functions than what we had before. And those are some areas where we plan to connect the dots a bit more across the divisions through the Chief Commercial Officer and to have really a scale capability for strategic accounts and to our Enterprise Data Office.

Martina Chung: We're looking at ways in which we can connect our data together so that it provides us with really interesting and easier pathways to growth across the organization. As you know, we have one of the deepest and richest data states in the business, and we're very excited about the potential for that. Thanks for the question.

Martina Chung: Thanks, Craig. Thank you.

Alex Hess: Our next question comes from Andrew Steinerman with GP Morgan. Your line is open.

Chris Craig: Yes, hi, this is Alex Hess on for Andrew. On the indices business, I'm going to ask about the indices business. Can you walk through some of what gives you conviction in the price actions going through the year? I know you guys touched on an ACV number and how we should maybe think about the relative strengths that you're calling out in that index data and custom piece versus a challenging end market for financial services and versus, you know, one of your peers calling out some softness in their ETF business. So it would be helpful to maybe get your thoughts on the landscape in the index.

Speaker Change: Yeah.

Chris Craig: Sure, hi, Alex.

Speaker Change: Sure Hi, Alex This is Chris. Thank you for your question. So first we are solving for a long term customer relationship and growth at indices, we will see some acceleration in the data and custom are in line with what we expected next quarter and we want to take the necessary steps and time to make sure. We're preserve long term relationships rather than solving for sure.

Chris Craig: This is Chris. Thank you for your question. So first, we are solving for long term customer relationship and growth at indices. We will see some acceleration in the data and custom in line with what we expected in the next quarter. We want to take necessary steps and time to make sure we're preserving long-term relationships rather than solving for short-term economics with our pricing. That said, data and custom did increase 5% year of year. The commercial initiatives we previously discussed earlier in the year are really starting to pick up now. ACV and the largest group on the end of day data revenue.

Speaker Change: Term economics with with our pricing.

Speaker Change: That said data customer did increased 5% year over year. The commercial initiatives. We previously discussed earlier in the year are really starting to pick up now ACD and the largest group at the end of day data revenue, we see that going into mid teens this quarter and really expect to see some some ACB acceleration later on in India.

Chris Craig: We see that going to bid teens this quarter and really expect to see some some ACV acceleration later on in the year.

Chris Craig: Thanks, Alex.

Speaker Change: Thanks, Alex.

George Tong: Thank you. Our next question comes from George Tongue with Goldman Sachs. Your line is open. All right. Thanks. Good morning.

Speaker Change: Thank you. Our next question comes from George Tong with Goldman Sachs. Your line is open.

George Tong: Alright. Thanks, good morning, I wanted to dive a little bit deeper into market intelligence can you elaborate on what you would need to see with respect to external market conditions for our growth performance to improve in what the low watermark for MA growth should be including when you would expect to see growth to bottom out.

Martina Chung: I wanted to dive a little bit deeper into market intelligence. Can you elaborate on what you would need to see with respect to external market conditions for growth performance to improve and what the low watermark for MI growth should be, including when you would expect to see growth to bottom out.

Martina Chung: Hey, George. It's Martina. Thanks for the question. Well, the low watermark in my parlance, I mentioned trough in in responsible and the earlier questions. We're not going to be the ones call a trough, but we have very good conviction here, George, that with the innovation that's going into the core products, with the increased touch points that we have with the customers. That as we emerge from this cycle, we'll see the recovery reflected in our financials as well as with our customers. It's too early to tell, and it could differ by a discrete sector within financial services, but we aren't hearing a little bit of green shoots here and there.

George Tong: Hey, George it's Martina and thanks for the question well be the low watermark.

Martina: In my Portland, San I mentioned trough in in response to an earlier question, we're not going to be the ones to call a trough, but with very good conviction here George that with the innovation that's going into the core products with the increased touch points that we have with the customers.

Martina: That as we emerge from this cycle, we will see the recovery reflected in our financials as well as our with our customers and you know look it's a it's it's too early to tell but and it could differ by discrete sector within financial services, but you know we aren't hearing a little bit of green shoots here and there continue pressure in other.

Martina Chung: Continue pressure in other places. I would say we'll watch this very, very carefully, but we feel good that we have the products in place, the investments in new products that Doug mentioned, which we're quite excited about, and continue to really engage as close as possible with our customers. Thanks for the question.

Martina: This is a I would say we will watch this very very carefully but we feel good that we have the products in place the investments in new products that Doug mentioned, which we're quite excited about and continue to really engage as closely as possible with our customers. Thanks for the question.

Alex Kram: Thanks, George. Thank you.

Martina: George.

George Tong: Thank you. Our next question comes from Alex Kramm with UBS. Your line is open.

Martina Chung: Our next question comes from Alex Kram, with UBS. Your line is open. Yes, hey, good morning, everyone. Can you talk a little bit more about what you're seeing in commodity insights and your outlook here going forward? I mean, I think this year you're punching nicely above your kind of median term investor day targets. I know the energy market backdrop is pretty, pretty good, but I think things like, you know, energy transition are still early. So I think as you look, as you look going forward, you know, do you think, you know, some of the cyclicality is going to get worse, or in other secular side, you think we're just at the beginning here of maybe some, some, some prolonged like upside.

Alex Kramm: Yes, Hey, good morning, everyone can.

Alex Kramm: Can you can you talk a little bit more about what you're seeing in commodity insights and and your outlook here going forward I mean, I think this year, you're punching nicely above your kind of medium term investor day targets I know the energy market backdrop is pretty pretty good but I think things like you know energy transition is still early so I think as you look.

Alex Kramm: As you look going forward or do you think are some of the cyclicality is going to get worse or are in a sexual aside do you think we're just at the beginning here at off maybe some some some prolonged like upside so maybe the cyclical versus secular was really the heart of the question. Thanks.

Martina Chung: So maybe the cyclical versus secular is really the heart of the question. Thanks.

Alex Kramm: Yeah.

Martina Chung: Hi, Alex.

Hi, Alex it's Martina. Thanks, so much for the question well, we're quite excited as we have been for several years now about the commodity insights business and the performance there and one of the things that excites us as we go forward is the the breadth and Ted if you like sort of an embedded diversification across the various.

Martina Chung: It's Martina. Thanks so much for the question. Well, we're quite excited, as we have been for several years now about the commodity insights business and the performance there. And one of the things that excites us as we go forward is the breath, and if you like, sort of embedded diversification across the various different commodity pieces, whether it's, you know, oil and gas, power, you know, and some of the other areas we've been investing in. In particular, we see, in addition to great performance for the larger core product areas. We've also seen really nice performance in some of the newer investment areas.

Alex Kramm: Commodity pieces, whether it's a you know oil and gas power, you know and and some of the other areas. We've been investing in in particular, we see in addition to great performance for the larger core product areas. We've also seen really nice performance in some of the newer investment areas. So.

Martina Chung: So, for example, we're seeing rapid growth around some of our energy transition products in particular. We had a new clean energy tech product that's been launched that's been very well received in the market and lots of other stuff that the teams are doing there, whether it's voluntary carbon markets, low carbon assessments, et cetera. So, we think that we're making the right investments here in the areas that will continue to grow going forward and sustaining very good positions and discipline around the core products in the business. Overall, we think a good story going forward here. Thanks for the question.

Alex Kramm: For example, we're seeing rapid growth around some of our energy transition products in.

Alex Kramm: In particular, we had a a new clean energy a tech product. That's been launched it's been very well received in the market and lots of other stuff that the teams are doing there whether it's a voluntary carbon markets low carbon assessments et cetera. So are we we think that we're making the right investments here in the areas that will continue.

Alex Kramm: To grow going forward and and sustaining very good positions and discipline around the core products in the business and overall have a we think a good story going forward here. Thanks for the question. Thanks, Alex.

Martina Chung: Thank you.

Speaker Change: Thank you. Our next question comes from Jeff Silber with BMO capital markets. Your line is open.

Ryan: Our next question comes from Jeff Silver with BMO Capital Markets. Your line is open. Hey, good morning.

Speaker Change: Hey, Good morning. This is Ryan here on for Jeff.

Martina Chung: This is Ryan here on for Jeff. Just on the private market solutions, it sounds like the revenues there were up 22% in 3Q. And you're seeing some strength from the buzz going on, private credit going on at the moment. We're just curious how you think your products are positioned to succeed and win share as the market heats up and gets more competitive. Thank you.

Speaker Change: On the private market solutions it sounds like the revenues there were up 22% and three Q and you're seeing some strength from the buzz going on in private credit going on at the moment.

Speaker Change: Just curious how you think your products are positioned to succeed and win share as the market heats up and gets more competitive going forward. Thank you.

Martina Chung: Hi, Ryan. It's Martina here. Thanks for the question. Well, private markets is something that we've been investing in and growing very fast in over the last several years. And it impacts us across the portfolio. We have phenomenal products in market intelligence. For example, I level on Wall Street office, and those two products have come up in some of the conversations that Doug and I have been having as we've done our transition meetings with senior clients. We also, as you know, have been making great strides in the ratings division with our private markets ratings and assessments, as well as seeing some really interesting opportunities in the index business also.

Speaker Change: Hi, Ryan its Martina here. Thanks for the question what private markets is something that we've been investing in and growing very fast and over the last several years and it impacts us across the portfolio, we have phenomenal products and market intelligence for example, I level and Wall Street office and in those.

Speaker Change: New products have come up in some of the conversations that Doug and I have been having as we said during our transition meetings with senior clients.

Speaker Change: We also as you know have been making great strides in the ratings division with our private markets ratings and assessments as well as seeing some really interesting opportunities in the index business. Also so you know overall this is a transversal opportunity for US we're excited about it we're going to continue to invest and Pri.

Martina Chung: So, you know, overall, this is a transversal opportunity for us. We're excited about it. We're going to continue to invest and prioritize within this area because there are so many ways in which we can plan this market. And we're going to be very dispensable about prioritizing within the private market opportunity to put the money where we can get the best return, deliver the best value for our customers, and overall returns to our shareholders. But it's a good story there for us. Thanks very much, friend.

Speaker Change: <unk> within this area because there are so many ways in which we can we can play in this market and we're going to be very disciplined and thoughtful about prioritizing within the private market opportunity to put the money, where we can get the best return.

Speaker Change: Deliver the best value for our customers and and overall returns for our shareholders, but it's a good story there for us thanks very much Ryan.

Ryan: Thank you, Ryan. Thank you.

Speaker Change: Thank you Ryan.

Speaker Change: Thank you. Our next question comes from Jeff Miller with Baird. Your line is open.

Chris Craig: Our next question comes from Jeff Moiler with Baird. Your line is open. Yeah. Thank you. Good morning.

Jeff Miller: Yeah. Thank you good morning.

Chris Craig: Just can you address the mobility revenue guidance? It's the second quarter in a row. You've trimmed the high end, and there's multiple positive call outs for vitality, and subscription growth looks good. Is it still recall activity headwinds or just any other call outs on mobility guidance? Thank you.

Jeff Miller: Can you address the mobility revenue guidance in the second quarter in a row, you've trimmed the high end and Theres multiple positive callouts for vitality and subscription growth books. Good is it still recall activity headwinds or just any other call outs on mobility got it. Thank you.

Jeff Miller: Yeah.

Chris Craig: Hey, Jeff. Thanks. Thanks for the question. This is Chris again. So, the first mobility sort of core subscription growth really did terrific this quarter, coming in at a little over double digits, low double digits. Even with the CDK outage, still we see strong growth in the subscription business. So, yes, the challenge continues to be recalled, but coming into next year, that we really have an easy lap when we look at 2025, mostly because of the recall. So that does continue to be the headwind in that market.

Jeff Miller: Hey, Jeff. Thanks. Thanks for the question. This is Chris again, so our first mobility.

Jeff Miller: Core subscription growth really did terrific this quarter coming in at a little over a double digit low double digits, even with the CDK outage still we see strong growth in the subscription business. So yes. The the challenge continues to be recalled but coming into next year that will really have a.

Jeff Miller: An easy laugh when we look at 2025, mostly because of the recall so that does continue to be the headwind in that market.

Chris Craig: Thank you, Jeff. Thank you.

Speaker Change: Thank you Jeff.

Speaker Change: Thank you. Our next question comes from Jason Hoff with Wells Fargo. Your line is open.

Martina Chung: Our next question comes from Jason Hough with Wells Fargo. Your line is open. Hi. Good morning. And thanks for taking my question. Here's you can talk about what you're seeing in terms of the pace of AI adoption among your customers. What, if anything, do you see holding them back from further adoption of some of the AI products that you're going out as a budgetary? Today is the, you know, concern about data accuracy.

Jason Hoff: Hi, good morning, and thanks for taking my question.

Jason Hoff: Talk about what Youre seeing in terms of the pace of AI adoption among your customers what if anything do you see holding them back from further adoption of some of the AI part.

Jason Hoff: So youre rolling out budgetary concerns.

Speaker Change: Data accuracy.

Martina Chung: And then I don't know if it's relevant or not, but if you can talk about your own learning, because if you rolled out AI and maybe what others can learn from that. Thank you.

Speaker Change: And then I don't know, if it's relevant or not but if you could talk about your own learnings you've rolled out AI and maybe what others can mark. Thank you.

Martina Chung: Hi, Jason.

Hi, Jason its Martina. Thanks for the question I think it goes without saying, but I suppose maybe I'll make the point anyway, a large language model is only as good as the quality and quantity of data that are it's trained on and we have lots of high quality data and so we feel really good about how we are integrating general.

Martina Chung: It's Martina. Thanks for the question. I think it goes without saying, but I suppose maybe I'll make the point anyway. A large language model is only as good as the quality and quantity of data that it's trained on. And we have lots of high quality data. And so we feel really good about how we're integrating generative AI into our products. I would say probably two areas think about, so one is, how do we take existing products and make them better. And the second is the extent to which we see opportunities to create maybe new versions of products, different cups of data using generative AI.

Speaker Change: The eye into our products I would say probably two two areas to think about so one is how do we take existing products and make them better and the second is the extent to which we see opportunities to create maybe new versions of products different cuts of data using generative AI and AR, we have tremendous momentum.

Martina Chung: And we have tremendous momentum; I would say you've seen a lot of that on one of the slides, for example, in our presentation that highlighted. And to your point, we have a lot of our customers because we've had Ken Show since 2018, and Ken Show has been riding the wave of, you know, machine learning, natural language processing. And then all the way into to gen AI and between that and just this incredible breadth and depth of data that we have, we have a lot of our clients actually saying, hey, could you come in and talk to us about how you were thinking about using your data.

Speaker Change: Momentum I would say you've seen a lot of that on one of the slides for example in our presentation that Doug highlighted and to your point, we have a lot of our customers because we had can show it since 2018 and can show has been riding the wave of you know machine learning natural language.

Speaker Change: The thing.

Speaker Change: And then all the way into to Jenny I and between that and just this incredible breadth and depth of data that we have a we have a lot of our clients actually saying, Hey could you come in and talk to US about how you were thinking about using your data you know what can we learn from that and those have been some really interesting and fruitful conversations and a lot of engagement from our customer.

Martina Chung: You know, what can we learn from that? And those have been some really interesting and fruitful conversations, and a lot of engagement from our customers on AI ready data as well. So those are just some examples. Internally, we, as Doug said, we're making really, really incredible progress on the rollout of Spark Assist, both the training on gen AI as well as the use of Spark Assist as a tool internally. And I can say that we are all very excited about the uptick and adoption across our own employees and the type of use cases that we're seeing, and we're able to share those earnings with our clients to make the conversations even more interesting.

Speaker Change: As a an AI ready data as well.

Speaker Change: So those are just some examples internally we as Chuck said, we're making really really incredible progress on the rollout of spark assessed both the training on Jennie O I as well as the use of spark assist is a tool internally.

Speaker Change: And I can say that we are all very excited about the uptake and adoption across our own employees and the types of use cases that we're seeing and we're able to share those learnings with our clients to make the conversations are even more interesting and you know what I would say that the the spark assist approach that we have taken a we've not net.

Martina Chung: And you know, I would say that the Spark Assist approach that we have taken; we have not necessarily seen many other organizations doing the same thing. So we have a lot to share in terms of learning with our customers and great dialogue. Thanks for the question.

Speaker Change: <unk> really seen many other organizations doing the same thing. So we have a lot to share in terms of our learnings with our customers and great great dialogue. Thanks for the question.

Martina Chung: Thanks, Jason. Thank you.

Speaker Change: Jason.

Speaker Change: Thank you. Our next question comes from Owen Lau with Oppenheimer. Your line is open.

Martina Chung: Our next question comes from Owen Lau with Oppenheimer. Your line is open. Good morning, and thank you for taking my questions. Could you please give us more color on your sustainability products? What is the outlook there, and how should we think about the new product launches? Thanks.

Owen Lau: Good morning, and thank you for taking my questions.

Owen Lau: Could you please give us more color on your sustainability products, what is the outlook there and how should we think about the new product launches. Thanks.

Owen Lau: Yeah.

Martina Chung: Hi, Owen. is Martina. Thanks so much for the question. Well, this is an area that we announced a change in when we did our leadership announcement last week. The plan forward here is to move the sustainable one business and combine it with the energy transition products and assets within Commodity Insights. And that merged group will essentially still function as a horizontal from within Commodity Insights. Now, this is very exciting for us. As I said earlier, the commodity insights division has some of the most unique and proprietary ways to think about and measure. Our energy transition is incredibly helpful, for example, for our financial services customers as they're thinking about whether or not they're financing some of these new technologies, what their finance emissions are, et cetera.

Speaker Change: Hi, Owen as Martina and thanks, so much for the question well this is an area.

Speaker Change: So we announced a change in when we did our leadership announcement last week. So the plan forward here is to move to sustainable one business and combine it with the energy transition products and assets within commodity insights and ER and that emerged group was essentially still function as a horizontal from with income.

Speaker Change: Out of the insights now this is very exciting for us as I said earlier the commodity insights division has some of the most unique and proprietary ways to think about and measure energy transition. It's incredibly helpful. For example for our financial services customers as they're thinking about whether or not their finance.

Speaker Change: Some of these new technologies are what they are financed emissions are you know et cetera. So this pulling together of these capabilities allows us to create some really unique and and forward looking.

Martina Chung: And so this pulling together of these capabilities allows us to create some really unique and forward-looking ways in which we can help our clients as they're navigating the transition. And I think, as importantly, we'll allow us to bring those really high-value commodity insights products to multiple different sectors outside of the commodity sector. So we're quite excited about it.

Speaker Change: The ways in which we can help our clients as they're navigating the transition and I think as importantly will allow us to bring those really high value commodity insights products to multiple different sectors outside of the commodity sector. So we're quite excited about it and we'll talk more about it next year and well thanks for the question.

Martina Chung: We'll talk more about it next year. And well, thanks for the question.

Russell Clutch: Thanks, Owen. Thank you. Our next question comes from Russell Clutch with Redburn Atlantic. Your line is open. Hi, thanks for having me on.

Speaker Change: So in.

Speaker Change: Thank you. Our next question comes from Russell clubs with Redburn Atlantic Your line is open.

Speaker Change: Yeah, Hi, Thanks for having me on.

Martina Chung: I wanted to come up to market intelligence, please specifically the desktop business. So you mentioned a typical headwind of sales and pricing has been a narrative for many quarters now. I wonder, this is more a function of lack of structural growth in financial service headcount and sort of high competition in this area that permanently restricts growth opportunities in terms of time and pricing. I also wondered how S&P thinks it could win market sharing desktops. And if it can give, or if you can give us a flavor, perhaps, of what customer sets you're talking, what asset classes you're talking, what geographical targeting, sorry, that would be very helpful.

Speaker Change: Let me talk about some market intelligence.

Speaker Change: Typically the desktop business, Doug you mentioned.

Speaker Change: Cyclical headwinds to sales and pricing has been a narrative for many quarters now.

Speaker Change: There's more of a function of locker structural growth in financial services head count.

Speaker Change: Competition in this area.

Speaker Change: Permanently restricts growth opportunities inside of the time of pricing.

Speaker Change: Oh, sorry, wondered how S&P thinks it can win market share and desktops and if you can give or if you could give us a flavor for perhaps of what customer sets you'll target asset classes, you were talking about geographies, you're targeting targeting sorry that would be very helpful.

Speaker Change: Yeah.

Martina Chung: Hi, Russell. It's Martini here. Thanks much for the question. Well, as we mentioned earlier, we do think this is an end market consideration. And here's the point that I would make on this. Structural is something that can play to our strengths as much as anything else. And a good example of that is the growth in sponsor business, for example, with private credit, and that's an area where you'll see us actually being able to pick up additional business as opposed to, let's say, other parts of the financial services vertical that are a bit better. It's more constrained right now.

Speaker Change: Hi, Russell, it's Martina here. Thanks, so much for the question well as we mentioned earlier, we do think this is a and end markets our consideration and Oh.

Speaker Change: Here's the point that I would make on this.

Speaker Change: Structural is a it's something that can play to our strengths as much as anything else and a good example of that is the growth in our sponsor business. For example, with our you know with private credit and that's an area, where you'll see us actually being able to pick up additional.

Speaker Change: Business as opposed to let's say other parts of the financial services vertical that are a bit more constrained right now, but I also mentioned that we are seeing some green shoots in some of the additional area and in the additional sectors are you know some good green shoots in some banking areas. For example, with some of our banking clients are all that being said.

Martina Chung: But I also mentioned that we are seeing some green shoots in some of the additional areas in the additional sectors, you know, some good green shoots in some banking areas, for example, with some of our banking clients. All that being said, you know, we have such an incredible breadth of offerings within market intelligence. And when you think about visible alpha, which has performed really well this year on top of the desktop growth. These are all areas where we think we can continue to engage our clients at the highest levels.

Speaker Change: We have such an incredible breadth of offerings within market intelligence and when you think about visible also which has performed really well this year on top of the desktop growth. These are all areas, where we think we can continue to engage our clients at the highest levels. We'd also expect you know for our strategic accounts are selling more.

Martina Chung: We'd also expect, you know, for our strategic accounts, Sally Moore's new function as the Chief Client Officer to be able to really connect the dots more effectively across divisions and create higher levels of long term value with our customers. So thanks for the question.

Speaker Change: New function as the chief client officer to be able to really connect the dots more effectively across divisions and and create higher levels of long term value with our customers. So thanks for the question.

Martina Chung: Thank you, Russell. Thank you.

Thank you Russell.

Speaker Change: Thank you we will now take our final question from surrendered thin with Jefferies. Your line is open.

Surinder Ben: We will now take our final question from Serendor Ben with Jeffries. Your line is open. Thank you. Following up on the creation of the Chief Client Officer role, you're talking about connecting the dots at the client level. Maybe can you provide a bit more color in the sense of the challenge that's being addressed? Is the idea to have a more integrated approach to sales here? How should we think about that? Hey Serendor, thanks very much for the question. Yes, it is in fact some of the things that you mentioned in your question around a bit more consistency in how we do things.

Speaker Change: Thank you.

Following up on the creation of the Chief client officer role.

Speaker Change: You've talked about connecting the dots with the current level, maybe can you provide a bit more color in the sense of how much that's being addressed is the idea to Harvey.

Speaker Change: A more integrated approach to sales here or customer service, how should we think about that.

Speaker Change: Okay.

Speaker Change: Uh Huh surrender, thanks very much for the question. So yes. We are it is in fact some of the things that you mentioned in your question around a bit more consistency in how we do things the connecting the dots is an important point because our sales teams. Today are are quite independent you know as we go across the entire book.

Martina Chung: The connecting of the dots is an important point because our sales teams today are quite independent as we go across the entire book of business. The result that we can have is that we'll have customers who buy more products or buy products from more than one division, but maybe don't even know the full breadth and depth of the products that we actually have. Probably one of the most common things that Doug and I have heard is we've been going out with senior clients over the last several months. I didn't know you did that. So a good first point here for Sally and this team will be making sure that our customers understand the full breadth and depth of everything that we do.

Speaker Change: Business and you know the results that we can have is that we will have customers who are buying more products, our <unk> products for more than one division and but maybe don't even know the full breadth and depth of the products that we actually have in and probably one of the most common things that Doug and I have heard as we've been going out with senior client.

Speaker Change: Over the last several months is I didn't know you did that so you know a good first point here for Sally and his team will be making sure that our customers understand the full breadth and depth of everything that we do she will also be looking to bring a you know some consistency year round are you know the overall go to market practices that we have in and really bolstering the street.

Martina Chung: She'll also be looking to bring some consistency around the overall go-to-market practices that we have and really bolstering the strategic relationships that we have with our clients going forward.

Speaker Change: Our relationships that we have with our clients going forward. Thanks for the question. Thanks.

Doug Peterson: Thanks for the question. And I want to thank everyone for joining the call today, and especially your great questions.

Doug Peterson: Surrender I don't want to thank everyone for joining the call today, and especially the great questions over the past 11 years I've had the honor of leading S&P global through significant transformation and we've always strive to deliver exceptional value to our shareholders and our customers. This is Mike 44th earnings call when they've had hundreds of meetings with analysts invest.

Martina Chung: Over the past 11 years, I've had the honor of leading us in peak global through significant transformation, and we've always strived to deliver exceptional value to our shareholders and our customers. This is my 44th earnings call, and I've had hundreds of meetings with analysts and investors, and I've always appreciated the discussion and the dialogue and the tough questions that you've asked. I've always learned I want to thank our 40,000 people at the company. They are the heart, the soul, and the brain of us in peak global and the recent for our success. And I know they're going to continue to deliver growth and innovation in the years ahead.

Doug Peterson: And I've always appreciated the discussion and the dialogue and the tough questions that you've asked I've always learned I want to thank our 40000 people at the company.

Doug Peterson: Are the heart the soul in the brain the best Hoopy Global and the reason for our success and I know, they're going to continue to deliver growth and innovation in the years ahead.

Martina Chung: I want to thank Martina and congratulate her on her new role. I'm confident that she's going to be a great CEO and will be a fabulous addition to the company with the full support of our people and a great knowledge and commitment to our customers, the communities, and our shareholders. I'm very excited about what lies ahead, and that we have a world-class board, a talented management team, and we're very well positioned for the future. I can't thank you all enough. This has been the best run I've ever had.

Doug Peterson: I want to thank Martina and congratulate her on her new role.

Doug Peterson: I'm confident that she is going to be a great CEO and will be a Fabulous addition to the company with the full support of our people and a great knowledge and commitment to our customers the communities and our shareholders.

Doug Peterson: I'm very excited about what lies ahead in the way of a world class Board, a talented management team and we're very well positioned for the future I can't. Thank you all enough. This has been the best run I've ever had.

Martina Chung: Thank you so much, Doug. For those heartfelt words and for your remarkable leadership that has transformed at peak global. You grew our market cap from 16 billion to 165 billion while fundamentally strengthening our capabilities through the IHS Market acquisition. But beyond these impressive numbers, you've led with extraordinary empathy and wisdom, creating a legacy that I'm deeply honored to follow upon.

Speaker Change: Thank you so much Doug for those heartfelt words in for your remarkable leadership that has transformed S&P global you grew our market cap from 16 billion to 165 billion, while fundamentally strengthening our capabilities through the IHS Markit acquisition, but beyond these impressive numbers, you've led with extraordinary empathy and <unk>.

Doug Peterson: With them, creating a legacy that I'm deeply honored to follow up on.

Mark Grant: So thank you to everyone who joined today's call. I look forward to speaking with you on our next earnings call. Thank you.

Speaker Change: So thank you to everyone who joined today's call I look forward to speaking with you on our next earnings call.

Speaker Change: Thank you that concludes this morning's call a PDF version of the presenter slides is available for downloading from Investor Dot S. P. Global Dot com replays of the entire call will be available in about two hours the webcast with audio and slides will be maintained on air.

Mark Grant: That concludes this morning's call. A PDF version of the presenter's slides is available for downloading from investor.spglobal.com. Replays of the entire call will be available in about two hours. The webcast with audio and slides will be maintained on S&P Global's website for one year. The audio-only telephone replay will be maintained for one month.

Speaker Change: N P Global's website for one year the audio only telephone replay will be maintained for one month on behalf of S&P Global we thank you for participating and wish you a good day.

Mark Grant: On behalf of S&P Global, we thank you for participating and wish you a good day.